It's that time again, or maybe it's the first time. You're in the market for a new property to use as a rental unit. This is an exciting time full of possibilities, but finding the right property is key to making the profit that is likely your entire reason behind deciding to invest. You'll need to do your research and decide where you'd like to invest. Some landlords prefer investing in their home cities. This allows them to manage the property easier, react quickly to the tenant's needs, and have a decent knowledge about the area. If you're investing in the same area that you've invested in before, you'll have at least a general idea on the income you can expect to receive, the types of applicants that will apply, and various other bits of information. As long as the market is good in your area, investing locally can be a smart move.
If your market isn't set for making a good profit from your rental, you may need to look elsewhere. More research may be involved in investing out of your local community, but if the profit is significantly better, it may be worth it. Make sure to check and recheck all your data before investing in any property and if you need to hire a property management company to handle an out-of-town property, you'll need to do your research on them as well.
Check out BiggerPocket's article on their tips to find rental friendly housing to invest in.